Globalisation Enquiry Question 1 Flashcards
What is globalization?
Increasing connectedness of countries around the world through movement of goods, services, capital and ideas across borders
What is chinas open door policy
1978-radical economic and political reform
Four SEZ established
TNC outsourced jobs
FDI helped china grow rapidly
What are the 4 aspects of globalization
ECONOMIC
Online purchasing
TNC
FDI
Stocks
POLITICAL
Trade blocs
IGOs
political views expressed in media
CULTURAL
westernization
SOCIAL
growth of migration
International tourism
What are the flows of globalization
Commodities-raw mats + manufactured goods
Capital-stocks + shares- goods and services- FDI- online banking- migrants often send money home
Information- internet, email, social networking
Tourists- increase in tech
Migrants- economic opportunity- refugee- seasonal workers
What are the development in transport that have created a shrinking world
Steam railways- across continent
Steam ships-overseas
Jet aircraft-overseas faster + places without coastline
Containerization- large volumes
What are the developments in ict that have contributed to globalization
Telegraph
Phones
Internet
Social media
Electronic banking
What are the three IGOs and what do they do
IMF
promotes financial corporations and trade between countries- provides loans to member countries in exchange for lifting trade restrictions
WTO
sets reuses on how countries trade to increase trade
WORLD BANK
Members pay subscription to bank, loan money to less developed countries
What do the three IGOs advocate and oppose
Advocate free trade, oppose protectionism
Encourage countries to join or form trade blocs so no taxes or tarrifs
Encourage national governments accept FDI
What has globalization led to
Lengthening of connections
Deepening of connections
Faster speed of connections
How is the work of IGOs controversial
Hold too much power, act in ways that are unfair to some countries
Strict rules and conditions to receive a loan e.g structural adjustment program- difficult for developing countries to follow
Governance found in developed countries- developed countries can cast more votes- some decisions may serve needs of richer nations
Role of national governments in globalization
Free market liberalization - remove restrictions on trade
Privatization
Encourage business startups
Decide wether country will be part of trade bloc
What are the advantages of trade blocs
Member states receive goods at a cheaper price
Trade barriers with non member states so certain industries within trade bloc are protected
Political security
EU blurt
Free trade
Own currency
Own parliament with laws
Schengen Agreement allows migration
Common external tarrifs
ASEAN blurt
Free trade - encouraged manufacturing + banking
No nuclear weapons- political stability
What are SEZs
Special economic zones
Areas of land where special economic rules apply e,g low tax rates
Infrastructure networks to encourage TNC
Offer subsidies
How does the AT Kearney index measure globalization
Business activity
Political engagement
Cultural experience
Info flow (internet)
Global connections through people (foreign born)
How does the KOF index measure globalization
Economic, social and political globalization
How are some countries switched off from globalization
Physical geography- physical isolation
Political decisions- political agenda, terrorism, corruption
Economic development- poverty
Environmental resilience- highly vulnerable to climate change, may limit growth of crops
How do TNCs affect globalization
Develop and control supply chains that extend across countries- movement of raw mats
FDI in countries with potential economic advantage e,g cheap Labour
Glocalization
Offshoring - moves branches to toner location
Outsourcing - moves parts of operations to local companies overseas
what is the global shift
where the majority of industrial activity has shifted from one parti of the world to another
how has the global shift come about
due to
global shift in manufacturing- NICs, cheap labour
outsourcing services- it support and customer services distributed globally, due to improvements in telephone and IT
china global shift case study
FDI investments led to more jobs and safer working conditions
india outsourcing case study
second largest English speaking population
growing number of graduates
benefits that have been created by the global shift
infrastructure investment - e.g-transport and energy, Shenzhen port has increased, new power stations
education, training, healthcare- national revenue led to investment in healthcare and school, higher literacy rate
waged work and poverty reduction - rise in wealth of its citizens.
